Author name: Filing Accounts

What Records Do You Need to Keep for HMRC in 2026? A Complete Guide for Self-Employed, Landlords & Limited Companies   What Records Do You Need to Keep for HMRC in 2026? A Complete Guide for Self-Employed, Landlords & Limited Companies Yes — HMRC requires you to keep accurate business and tax records so you can complete your tax returns correctly and prove your figures if they carry out a check. Poor record-keeping is one of the most common reasons for penalties, disputes, and unexpected tax bills. Updated March 2026: With Making Tax Digital for Income Tax (MTD ITSA) now mandatory for self-employed individuals and landlords earning over £50,000 (and rolling out to lower thresholds in coming years), digital record-keeping is no longer optional for many. Paper records alone are no longer sufficient for those in scope. At Filing Accounts, we help self-employed people, landlords, and limited company directors maintain compliant records and avoid costly HMRC penalties. Contact us today for practical record-keeping advice or to set up proper systems for your business. Why You Must Keep Records for HMRC HMRC expects you to keep records that allow you (and them) to: Calculate your correct tax liability Support your Self Assessment, Corporation Tax, or VAT returns Provide evidence during any compliance check or enquiry Failing to keep adequate records can lead to: Fixed penalties of £100+ Further penalties based on the tax at risk Loss of expense claims Increased chance of a full tax investigation What Records Do You Need to Keep? (By Business Type) 1. Self-Employed / Sole Traders You must keep records of: All income — invoices issued, bank statements, till rolls, online sales reports, and any other money received All business expenses — receipts, invoices, mileage logs, bank statements, and petty cash records Personal income — PAYE payslips, pensions, savings interest, dividends, etc. VAT records (if VAT registered) — full VAT invoices and VAT account summaries PAYE records (if you employ staff) Mileage and vehicle records — business miles, fuel, and maintenance Home office expenses — if claiming a proportion of rent, utilities, etc. Digital requirement (from April 2026): If your combined self-employment + property income exceeds £50,000, you must keep digital records and submit quarterly updates under Making Tax Digital. 2. Landlords (Property Income) Rental income records (tenancy agreements, rent receipts) Property expenses (repairs, insurance, agent fees, mortgage interest — note restrictions apply) Utility bills and service charges Capital expenditure (for capital allowances or CGT purposes) 3. Limited Companies Companies must keep full accounting records for at least 6 years from the end of the financial year, including: Sales and purchase invoices Bank, credit card, and cash records Asset registers (for depreciation and capital allowances) Payroll and RTI records (if you have employees) Director’s loan accounts Minutes of board meetings (especially for dividends) How Long Do You Need to Keep Records? Situation Minimum Retention Period Self-Employed / Self Assessment 5 years after 31 January filing deadline Limited Companies (Corporation Tax) 6 years from end of accounting period VAT-registered businesses 6 years PAYE / Employment records 3 years (some up to 6 years)    Example: For the 2025/26 tax year (filed by 31 Jan 2027), self-employed individuals must keep records until at least 31 January 2032. Making Tax Digital Record-Keeping Requirements (2026) From April 2026, if your self-employment or property income exceeds £50,000: All records must be kept digitally in HMRC-recognised software You cannot rely on paper records or spreadsheets alone You must submit quarterly updates to HMRC Even if you’re below the threshold, moving to digital records now is highly recommended. Best Practice Tips for Record-Keeping in 2026 Use accounting software (Xero, QuickBooks, FreeAgent, etc.) for automatic bank feeds and digital trails Scan and store all receipts digitally with date, amount, and description Keep separate personal and business bank accounts Review records monthly rather than leaving everything until year-end Back up your data regularly (cloud storage is best) Maintain a mileage log if claiming vehicle expenses What Our Clients Say on Trustpilot “Filing Accounts set up proper digital records for me under MTD. Made my life so much easier!” – Anonymous, March 2026 (5 stars) “They reviewed my existing records and helped me become fully compliant. Excellent service.” – Mark T., February 2026 (5 stars) “Saved me from potential penalties with clear record-keeping advice.” – Sarah L., January 2026 (5 stars) With our consistent 4.2/5 Trustpilot rating, businesses trust us to keep their records HMRC-compliant. Frequently Asked Questions What is the penalty for not keeping records? HMRC can charge penalties of £100 or more, plus further penalties based on the tax lost. Do I need to keep paper copies? No — digital records are acceptable (and required under MTD), as long as they are accurate and accessible. How long should I keep records if I’m a limited company? At least 6 years from the end of the company’s financial year. Can Filing Accounts help me set up proper record-keeping? Yes — we can review your current system, recommend software, and ensure you meet all HMRC requirements. Official GOV.UK resources: Business records if you’re self-employed Keeping records for Self Assessment Making Tax Digital for Income Tax Need Help Setting Up Proper HMRC-Compliant Records? Good record-keeping doesn’t have to be complicated or time-consuming. Filing Accounts provides practical, affordable support to help you maintain compliant records, whether you’re self-employed, a landlord, or running a limited company. Contact us today or book a free consultation — we’ll review your current records and set you up with a system that works for your business in 2026.

What is a UTR number? This fact-checked guide from Filing Accounts explains what a UTR is, who needs one, how it differs from other UK tax references, and how to find yours.

How to Get Your Money If Your Company Has Been Dissolved (UK Guide 2026)   If your limited company has been dissolved (struck off the register), you can still recover money or assets in many cases, but the process depends on what type of funds are involved and how long ago the company was dissolved. Remaining assets automatically pass to the Crown as bona vacantia (ownerless property), but former directors, shareholders, or creditors have clear routes to reclaim them. Updated March 2026: The rules around restoration and bona vacantia claims remain consistent, but stricter ID verification and faster processing at Companies House mean applications are now reviewed more rigorously. Common scenarios include reclaiming bank balances, tax refunds (especially from HMRC), or other overlooked assets that surfaced after dissolution. At Filing Accounts, we regularly help former directors and shareholders recover funds from dissolved companies through restoration or bona vacantia claims. Contact us today for expert assistance with company restoration, asset recovery, or full guidance on getting your money back. What Happens to Money and Assets When a Company Is Dissolved? When a limited company is struck off and dissolved: All remaining assets (bank balances, tax refunds, property, unpaid invoices, etc.) pass to the Crown as bona vacantia. The company no longer legally exists, so it cannot receive or hold money. Former directors and shareholders lose direct control, but legal routes exist to recover funds. Important: Not all money is lost forever. You have options within specific time limits. Main Ways to Recover Money from a Dissolved Company in 2026 Option 1: Administrative Restoration (Fastest & Cheapest – Within 6 Years) This is the preferred route for most former directors or shareholders. Eligibility: You were a director or shareholder at the time of dissolution The company was dissolved within the last 6 years The company was trading (or had assets) at the time of dissolution Process: Obtain a Bona Vacantia waiver letter from the Government Legal Department (proves they agree to release the assets). File Form RT01 (Application for Administrative Restoration) with Companies House. It costs £341 to apply. File any outstanding accounts, CS01, and pay any late filing penalties. Once restored, the company can reclaim assets (e.g., close bank accounts or receive HMRC refunds). You can then distribute funds or strike off the company again if no longer needed. Official guidance: Restore a dissolved company (administrative restoration) Option 2: Court Order Restoration Used when administrative restoration is not available (e.g., more than 6 years have passed or complex circumstances). This is more expensive and time-consuming but possible in many cases. Option 3: Discretionary Grant (for Shareholders) If restoration is not practical, former shareholders can apply directly to the Bona Vacantia Division for a discretionary grant to return some or all of the funds. Best for: Small amounts or when you don’t want to restart the company. Official page: Apply for a discretionary grant Step-by-Step: How to Recover Money from a Dissolved Company Confirm the company is dissolved Search on Companies House to verify status. Identify the assets Common recoverable items: bank balances, HMRC tax refunds, unpaid customer invoices, or property. Contact the Bona Vacantia Division Request a waiver letter if assets are held by them. Apply for restoration (if eligible) Use Form RT01 for administrative restoration. Reclaim the funds Once restored, open a temporary bank account or request direct payment. Distribute or close again Pay out to shareholders/directors and optionally strike off again. Pro tip: Act quickly — the longer you wait, the harder and more expensive it becomes. Common Scenarios & Solutions HMRC tax refund arrived after dissolution → Usually treated as bona vacantia. Restoration is the most reliable way to recover it. Money left in a business bank account → Bank will freeze it and forward to the Crown. Requires restoration or waiver. You are a creditor → You can object during the 2-month Gazette period or apply for restoration/court order. Small shareholder distribution → Discretionary grant route may be simpler. Costs Involved in 2026 Administrative restoration fee: £100–£341 Outstanding filing fees and penalties: Variable Accountant/legal support: £500–£2,000+ Court restoration: Significantly higher (legal fees) Real-Life Example: How to Recover £3,000 Left in a Dissolved Company Bank Account Let’s say your limited company was struck off in January 2025 with £3,000 remaining in its business bank account. Here’s exactly what happens and the best process to recover the money in 2026: What Happens to the £3,000? The bank freezes the account upon dissolution. After a period, the bank transfers the £3,000 to the Bona Vacantia Division (the Crown). The money is no longer legally yours or the company’s until you take action. Recommended Process: Administrative Restoration (Most Effective Route) Step-by-step process to recover the £3,000 (as of March 2026): Confirm eligibility Check that the company was dissolved less than 6 years ago and you were a director or shareholder at the time. Contact the bank first Ask the bank for a letter confirming the balance at the date of dissolution and that the funds were sent to Bona Vacantia. Apply for a Bona Vacantia Waiver Contact the Government Legal Department’s Bona Vacantia Division and request a waiver letter. Provide: Company name and registration number Proof you were a director/shareholder Bank letter showing the £3,000 balance File Form RT01 for Administrative Restoration Submit online or by post to Companies House Pay the £341 restoration fee File any outstanding accounts and the Confirmation Statement (CS01) — £50 fee Pay any late filing penalties Once the company is restored (usually within 4–8 weeks): The company legally exists again Open a temporary business bank account (or use an existing one) Request the £3,000 from the Bona Vacantia Division (they will release it once they see the company is restored) Distribute the funds to shareholders (as capital or dividends) Optionally strike the company off again if no longer needed Total estimated cost (2026): £800 – £2,200 (including £341 restoration fee, £50 CS01, late filing penalties, and accountant support) Timeframe: 2–4 months in most straightforward